U.S. dollar market of Kazakhstan: day results

/IRBIS, Feb. 09, 00/ - In the table below main indicators of the Kazakhstan dollar market are stated (U.S. dollar occupies more than 98% of all exchange market). ------------------------------------------------------------------------------- US dollar trades at the Kazakhstan stock exchange (KASE) -------------------- --------------- -------------- ------------- ------------- Tool USD TOD USD TOD USD TOM USD SPOT Session Main Additional Evening Evening Time of trades (ALM) 10:15-11:00 11:30-15:30 14:00-18:00 14:00-18:00 Average weighted rate 139.82(+0.14) not given - 139.87 Volume of session (million) 5.985(+1.505) 1.000 0 0.500 Demand price 139.81 139.85 *139.85 *139.87 Supply price 139.82 139.90 *139.93 *139.93 -------------------- --------------- -------------- ------------- ------------- Notes: As the market quotations the best demand and supply prices at the moment of trades closing are shown. In case of absence those in the KASE trade system the last quotations are shown, which are marked with an asterisk (in this table - at 17:00). By the indicative dollar quotations in the REUTERS information system, tenge in comparison with the previous day closing both on dollar demand and on supply has lost 18 points. In comparison with Tuesday the speed of dollar strengthening has grown. The IRBIS agency draw attention to indicative quotations do not always reflect of the dealers' opinion concerning current dollar price. About 3PM- 4PM and later the banks begin to quote USD at the TOM and SPOT accounts. Besides it is necessary to remember that these quotation do not obligate dealers and are rather some kind of the psychological tools. Nevertheless, the practice shows, what even this indicator can be effectively used at the analysis, as it completely corresponds to the market quotations dynamics. The last show the actual dollar prices, as they every moment can by used as basement for transactions. The market today looked active and liquid. Practically each US dollar price or quotation specified continued dollar strengthening. Within first two days of week the market rather frostily reacted to USD growth, but today it is possible to speak about formation of the new tendency in exchange rate dynamics. At the same time it is necessary to note that there are no dollar shortages. In conditions of almost redundant tenge liquidity (the shortest money quotations varied today from 1/6 to 3/5% p.a.) the banks try to use the that trend and extend their currency net - positions up to determined by the National Bank limit. In the dealers opinion, these positions are not realized completely and the banks have some reserves, which today can be considered as an additional "degree of freedom" in the speculative operations. There are no rush in USD demand. TOD accounts spreads are rather narrow. It is hardly possible to assume today that the dealers seriously hope for the high speed of tenge devaluation in the near future. While under the short-term tendency (7 days) this speed is evaluated by the trend 17.8% p.a. that is higher than rates of all other financial tools. In opinion of the IRBIS analysts, just this circumstance explains activity in the exchange market within last two days. Thus, on Thursday on KASE main session it is possible to expect the further dollar strenghtening within the limits of 10-15 points. The higher speed will be hardly probable welcomed by the National Bank, but it is still possible.